Health insurance co-op gets OK to operate in Iowa

CoOportunity Health will start offering policies Oct. 1.

Mar. 30, 2013

Written by

The Des Moines Register

A new health insurance co-op has received a license to operate in Iowa.

CoOportunity Health plans to market policies to Iowans and Nebraskans mainly through new health insurance exchanges created by the Affordable Care Act, or Obamacare.

The exchanges, scheduled to open in October, are to be computerized systems that help consumers and employers compare and purchase policies from competing vendors. The company’s goal is to attract a total of 50,000 members in Iowa and Nebraska within five years.

Company officials believe Iowans will want more choices beyond Wellmark, which controls 86 percent of the state’s market for insurance sold to individuals, and 64 percent of policies sold to small employers. No other carrier has more than a few percentage points.

The Iowa Insurance Division granted the certificate of authority to provide health insurance. CoOportunity Health officials said the company expects approval from the Nebraska Department of Insurance early next week.

“We’re pleased to have completed the state insurance licensing process in Iowa. This is an important accomplishment in our business plan, and keeps us on track toward introducing our innovative health insurance solutions to Iowa and Nebraska individuals and businesses later this year,” David Lyons, CoOportunity Health’s CEO, said in a statement.

The company plans to begin offering the policies on Oct. 1, when the new insurance marketplace will start under the federal law.

Federal officials agreed to lend CoOportunity Health up to $113 million to get started. Such Consumer Operated and Oriented Plans have been approved in 24 states, CoOportunity Health said.

The nonprofit was founded by Lyons, a former Iowa insurance commissioner; Cliff Gold, a former Wellmark executive; and investor Stephen Ringlee.

The company also announced that it has expanded its board of directors beyond the founders. The board will include Dr. Harris A. Frankel, a specialist and medical director at the University of Nebraska Medical Center, and Nancy Thompson, executive director of the Health Center Association of Nebraska.